Newfoundland and Labrador levies personal income tax (PIT) directly on taxable income, rather than as a percentage of federal tax. This approach is referred to as Tax on Income (TONI).

Under TONI, taxable income is calculated using the same definition of federal taxable income. However, a separate set of Tax Brackets and Tax Rates are used to calculate provincial tax.

Tax brackets, non-refundable tax credits (except education, pension, and volunteer firefighters’ amounts and most expenditure based credits), the Low Income Tax Reduction and the Low Income Seniors' Benefit will be indexed annually utilizing the Consumer Price Index.

The provincial rates for the 2013 and 2014 taxation years are as follows:

2013

Provincial Tax Bracket

Rates

1st

$33,748 or less

7.7%

2nd

$33,748.01 to $67,496

12.5%

3rd

Over $67,496

13.3%

2014

Provincial Tax Bracket

Rates

1st

$34,254 or less

7.7%

2nd

$34,254.01 to $68,508

12.5%

3rd

Over $68,508

13.3%

The provincial non-refundable credits for the 2013 and 2014 taxation year are as follows:

Provincial
Non-Refundable Credits*

2013 Amount

2014 Amount

Basic Personal Amount

$8,451

$8,578

Age Amount

$5,395

$5,476

Spousal and Equivalent to Spouse Amounts

$6,906

$7,009

Amount for Infirm Dependents Age 18 or Older

$2,683

$2,724

CPP/QPP Contributions

Actual Expense

Actual Expense

EI Premiums

Actual Expense

Actual Expense

Pension Income Amount

$1,000

$1,000

Caregiver Amount

$2,684

$2,724

Disability Amount

$5,703

$5,788

Disability Supplement Amount

$2,684

$2,724

Interest Paid on Student Loan

Actual Expense

Actual Expense

Tuition Amount

Actual Expense

Actual Expense

Education Amount
- full time (per month)
- part time (per month)

$200
$60

$200
$60

Medical Expense Amount Threshold

$1,841

$1,868

* These values represent the maximum amount subject to other parameters.

Charitable Donations Credit
- First $200
- Over $200

7.7%
13.3%

7.7%
13.3%

Dividend Tax Credit
- Dividends from small business
- Dividends from large corporations